Business Studies Multiple Choice Question – 1 August 2017

A small bookshop runs an overdraft of £1,000 for the past 12 months. The rate of interest on the overdraft was 8%. The bank has now written to the business saying that its overdraft rate will change to 10%? What will be the increase in its overdraft interest costs if it borrows £1,000 for another 12 months?

Select ONE answer:

£100

£80

£20

£10

£50

What will be the increase in its overdraft interest costs if it borrows £1,000 for another 12 months at 16% interest?
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This is multiple choice question is suitable for Business Studies KS4 classes.